Crypto Companies Push SEC for Faster ETF Approvals and Confidential Drafts

Several major players in the crypto and financial markets are calling on the U.S. Securities and Exchange Commission (SEC) to overhaul parts of its review process for exchange-traded products (ETPs), particularly those involving newer crypto-related structures.

Among the proposals are confidential pre-filing discussions, shorter review periods, clearer listing timelines, and broader access to staking-related assets within spot crypto products.

Grayscale Calls for Confidential ETF Filings

Grayscale has asked the SEC to introduce an optional confidential process allowing sponsors to discuss draft registrations with the regulator before making their filings public.

The asset manager argues that keeping early-stage filings private could discourage competitors from quickly submitting similar or duplicate applications after seeing another sponsor’s proposal. Grayscale also called for SEC staff to provide a response within 45 days.

21Shares made a comparable argument, noting that publicly available filings can make it easier for competing sponsors to replicate proposed products. The issue has gained attention as the SEC examines whether artificial intelligence could be contributing to the rapid submission of multiple “novel” ETF applications that are largely alike.

A16z Pushes for Faster SEC ETF Reviews

Venture capital firm a16z is also seeking a shorter review process for ETF applications.

The firm pointed to the increasing use of electronic submissions and standardized disclosure formats, arguing that many products raise similar regulatory questions. It also noted that financial markets can move considerably faster than the current review cycle.

However, a16z stressed that accelerating the process should not come at the expense of regulatory scrutiny, arguing that a faster review must still provide sufficient oversight.

Jane Street Warns Against Rushed ETF Launches

Not all market participants support simply speeding up the process.

Jane Street warned that pressure to bring ETFs to market quickly could lead to rushed registrations and reduce the time available for sponsors to consult market makers about fund structure and liquidity.

The firm also proposed requiring new ETFs to begin trading with at least two authorized participants, which are responsible for creating and redeeming ETF shares and play a key role in maintaining market liquidity.

Charles Schwab Opposes Fully Confidential Filings

Charles Schwab took a different position on confidentiality, arguing against making the entire filing process private.

The company said that if the SEC engages in confidential discussions with an ETF sponsor, the eventual filing should still become publicly available at least 75 days before the fund becomes effective. This approach, according to Schwab’s proposal, would preserve greater transparency while allowing issuers to communicate with regulators before submitting public filings.

Crypto Firms Seek Access to Staking Receipt Tokens

The SEC’s review has also prompted requests that go beyond filing procedures.

Multicoin Capital urged the regulator to permit qualifying staking receipt tokens within spot crypto ETPs. These tokens represent digital assets that have been staked to generate rewards and, under the proposal, could potentially account for a substantial portion of an ETP’s digital asset holdings.

Jito Labs, the Jito Foundation and the Solana Policy Institute joined Multicoin in calling for a regulatory framework that would allow spot crypto products to use staking receipt tokens.

Such a change could create new opportunities for investment products to capture staking-related returns while maintaining an exchange-traded structure.

NYSE Seeks Greater Certainty for Novel ETF Listings

NYSE focused on another part of the process: the uncertainty surrounding exchange listings.

The exchange said SEC staff can currently request that a listing be delayed while regulatory questions are being addressed without providing a specific timeline for when the issue will be resolved. This can create uncertainty for exchanges and issuers, particularly when another exchange could potentially move forward with a similar product.

NYSE therefore called for clearer and more predictable timelines when novel ETFs are under regulatory review.

SEC Faces Growing Pressure to Modernize ETF Oversight

The range of responses highlights the broader debate surrounding how the SEC should regulate the rapidly expanding market for crypto-related investment products.

Comments submitted by Aug. 31 have continued to appear in the SEC’s public database even after the deadline. The regulator has not yet provided a timetable for deciding on the proposed changes.

SEC ETF Rules Are Being Tested by Crypto’s Faster Market Cycle

The responses reveal a fundamental tension in the evolution of crypto ETFs: issuers want a regulatory process that moves quickly enough to match market developments, while regulators and market participants still need to protect transparency, liquidity and investor safeguards.

The growing number of competing applications also suggests that the traditional filing model may be struggling to keep pace with an increasingly competitive market where product structures can be replicated quickly. At the same time, Jane Street and Schwab’s concerns show why greater speed cannot come at the expense of market quality or public transparency.

If the SEC ultimately introduces a more predictable and efficient framework while maintaining rigorous oversight, it could make the U.S. market more attractive for innovative crypto investment products. Allowing carefully structured staking-based products could further expand this market, but the regulator’s approach to balancing innovation, competition and investor protection will likely determine how far the next generation of crypto ETPs can develop.